Ark Invest sees a positive outlook for artificial intelligence stocks in general, but is exiting some of its positions in a major player.
Ark Invest Founder and CEO Cathie Wood sees a bright future for artificial intelligence.
But she is removing or paring back one AI stock from a few of her ETFs.
The graphics-chip specialist’s stock has been delivering consistently exceptional returns. It is up near 50% so far year-to-date in 2023.
“But we believe that the hidden gems that will benefit perhaps the most from artificial intelligence are those companies with proprietary datasets,” she said in February, according to The Motley Fool.
“AMD shares are up nearly 20% since the beginning of the year,” wrote Benzinga. “During the beginning of the month, the company reported its fourth-quarter earnings, which showed its revenue increased by 16% year-over-year to $5.6 billion primarily driven by growth across the Embedded and Data Center segments.”
In its “Big Ideas 2023” publication, ARK Invest said generative AI was improving the productivity of knowledge workers.
“AI should increase the productivity of knowledge workers more than 4-fold by 2030, it wrote. “At 100% adoption, AI could increase global labor productivity ~$200 trillion, dwarfing the ~$32 trillion in total knowledge worker salaries.”
The report said cost declines for sophisticated AI chatbots should enable mass adoption of them.
“Released by OpenAI in November 2022, ChatGPT uses large-language models to generate text in response to user prompts,” it wrote.
“Within five days of launch, the number of users reached 1 million. While the inference costs to run the model at scale are [less than a penny] per query, Wright’s Law suggests that by 2030 ChatGPT-style applications will be deployable at the scale of Google Search, processing 8.5 billion searches per day.”